The Economic Contribution of Meeting Activity in Denmark. Published by: VisitDenmark May 2012 ISBN:

Transcription

1

2 The Economic Contribution of Meeting Activity in Published by: Visit May 2012 ISBN: Address Islands Brygge 43, Copenhagen S Tel: Front page MediaCenter Photographer: Niclas Jessen Visit 2012 Reproduction of the report or part thereof is only allowed when source is acknowledged.

3 Acknowledgement Visit is pleased to release the results of the first research study ever in on the economic contribution of meetings to the Danish economy. On behalf of the project team, Visit would like to acknowledge everyone involved in the study. First of all, a great thank-you goes to the thousands of people from delegates to members of the Meeting Industries who took the time to complete our lengthy and detailed questionnaires. The study would not have been possible without their participation. Thanks also go to Dr. Jie Zhang at Centre of al and Tourism Research, who has contributed with methods to establish this Meeting Satellite Account, and to Wonderful Copenhagen, VisitEast, Visit Southern and VisitAarhus for kind financial support of the study. The study would not have been accomplished, had it not been for the kind advice and sharing of methodology from the researchers behind one of the first thorough economic impact studies of the meeting industry, The Economic Contribution of Meeting Activities in Canada. Finally, The Economic Contribution of Meeting Activity in represents the effort of a project team representing experts, research analysts and the meeting industry. We would like to thank each member of the project team for sharing knowledge and experience, and for patience and confidence through-out the whole process: Steen Jakobsen, Wonderful Copenhagen Ole Sorang, Rezidor Mette Mecklenburg von Undall, VisitAarhus Peter Saabye Simonsen Søren Damstrup, MPI Benedikte Rosenbrinck, HORESTA Mogens Stendrup Lise Lyck, Copenhagen Business School Anja Hartung Sfyrla, Visit On behalf of the project team we hope the report is met with interest and recognition. --- Henrik Kahn Director, UK& Ireland Visit Claudia Rota Andersen Head of Research and Market Intelligence Visit Sanne Dissing Research Analyst Visit ii

4 Table of Contents ACKNOWLEDGEMENT...II TABLES AND FIGURES... IV EXECUTIVE SUMMARY... V 1 INTRODUCTION OBJECTIVES BACKGROUND MEETING SATELLITE ACCOUNT MEASURING MEETINGS IN THE FUTURE STRUCTURE AND USE OF THE REPORT METHODOLOGY THE SURVEYS...5 The Venue Survey...5 The Organizer Survey...6 The Delegate Survey DETERMINING DIRECT CONTRIBUTION DETERMINING THE DERIVED EFFECTS CAPACITY MEETING ACTIVITY LENGTH OF MEETINGS DELEGATES DELEGATES STAYING OVER NIGHT DAILY COST AND SPENDING EXPENDITURES ASSOCIATED WITH MEETING ORGANIZATION DELEGATE SPENDING DAILY COST AND SPENDING THE ECONOMIC CONTRIBUTION OF MEETINGS Total Meeting Costs...23 Total Delegate Spending TOTAL MEETING EXPENDITURE INDIRECT AND INDUCED CONTRIBUTION RESULTS EMPLOYMENT GROSS VALUE ADDED TAXES AND VAT...30 REFERENCES APPENDICES APPENDIX 1 GLOSSARY...32 APPENDIX 2 INTERNATIONAL STUDIES...33 APPENDIX 3 EXTENDED TABLES...34 iii

5 Tables and Figures Tables TABLE 2.1 VENUE SURVEY...6 TABLE 2.2 ORGANIZER SURVEY...7 TABLE 2.3 DELEGATE SURVEY...7 TABLE 3.1 PARTICIPANT CAPACITY PER VENUE TYPE...10 TABLE 3.2 PARTICIPANT CAPACITY PER REGION...11 TABLE 4.1 MEETING ACTIVITIES...12 TABLE 4.2 MEETINGS PER REGION...12 TABLE 4.3 AVERAGE ACTIVITY PER VENUE...13 TABLE 5.1 DELEGATES AT MEETINGS...15 TABLE 5.2 DELEGATES AT MEETINGS PER REGION...15 TABLE 5.3 DELEGATES PER LENGTH OF STAY AND PER DOMESTIC/INTERNATIONAL...17 TABLE 5.4 DELEGATES STAYING OVER NIGHT...17 TABLE 5.5 BED NIGHTS...18 TABLE 6.1 DAILY MEETING COSTS...19 TABLE 6.2 AVERAGE DAILY DELEGATE SPENDING...20 TABLE 6.3 COMPOSITION OF AVERAGE DAILY SPENDING PER MEETING PURPOSE...21 TABLE 6.4 AVERAGE DAILY COST AND SPENDING PER PURPOSE...22 TABLE 7.1 TOTAL MEETING COST...23 TABLE 7.2 TOTAL MEETING COSTS PER PRODUCT...24 TABLE 7.3 TOTAL DELEGATE SPENDING...25 TABLE 7.4 TOTAL DELEGATE SPENDING PER PRODUCT...25 TABLE 7.5 TOTAL MEETING EXPENDITURES...26 TABLE 7.6 TOTAL MEETING EXPENDITURES PER REGION AND PURPOSE...26 TABLE 7.7 EXPORTS FROM DENMARK...27 TABLE 7.8 EXPENDITURES PER LENGTH OF STAY AND PER DOMESTIC/INTERNATIONAL...27 TABLE 8.1 DIRECT AND DERIVED EMPLOYMENT PER INDUSTRY...28 TABLE 8.2 EMPLOYMENT EFFECTS PER REGION...29 TABLE 8.3 DIRECT AND DERIVED GROSS VALUE ADDED PER INDUSTRY...29 TABLE 8.4 GROSS VALUE ADDED PER REGION...30 TABLE 8.5 DIRECT AND DERIVED TAXES PER TAX FORM...30 TABLE 8.6 TAXES AND VAT PER REGION...30 TABLE A1 AVERAGE MAXIMUM CAPACITY PER REGION AND VENUE TYPE...34 TABLE A2 DURATIONS PER PURPOSE AND VENUE TYPE...35 TABLE A3 NUMBER OF BED NIGHTS AND DAY VISITS...36 TABLE A4 DAILY MEETING COST...37 Figures FIGURE 1.1 TOURISM SATELLITE ACCOUNTS AND MEETING SATELLITE ACCOUNTS...3 FIGURE 2.1 BASIC STRUCTURE OF THE ANALYSIS...5 FIGURE 3.1 PARTICIPANT CAPACITY SPLIT ON TYPE OF VENUE...11 FIGURE 4.1 MEETINGS PER VENUE TYPE...13 FIGURE 4.2 DURATION OF MEETINGS...14 FIGURE 5.1 DELEGATES PER VENUE TYPE...16 FIGURE 7.1 TOTAL MEETING COST PER VENUE TYPE...24 iv

6 Executive Summary The Danish meetings industry was responsible for nearly 188,000 meetings held in 2010, attended by a total of 6.9 million delegates. This created a direct turnover of DKK 20.8 billion, of which DKK 11.4 billion constitutes costs of meetings and DKK 9.4 billion is spending from delegates. International delegates contribute with DKK 3.5 billion of the total. On average, Domestic meeting delegates spend DKK 1,950 per day, while international delegates spend a bit more, DKK 2,400 per day. International meeting delegates staying for at least one night are with expenses of DKK 3,030 per day among the highest spending delegates in. International delegates contribute with DKK 3.5 billion to the Danish Meeting industry Meeting activity in Total number of meetings 187,900 Total number of delegates 6.9 million Direct turnover (total) Domestic meetings International meetings DKK 20.8 billion DKK 17.3 billion DKK 3.5 billion Total meeting costs Total delegate spend DKK 11.4 billion DKK 9.4 billion Expenditures per person per day DKK 2,010 Domestic meetings DKK 1,950 International meetings DKK 2,400 Direct and derived effects Full-year jobs (equivalent) 37,900 Gross Value Added DKK 15.3 billion Income taxes DKK 4.7 billion Total expenditures of DKK 20.8 billion generate a significant economic contribution. Almost 38,000 jobs are created due to the direct and derived effects, corresponding to 1.4 per cent of total employment in. Gross Value Added amounts to DKK 15 billion, or equivalent to 1.0 per cent of the Danish GVA, when including derived effects. Taxes in the form of personal and corporate income taxes, as well as VAT make up 1.3 per cent of the total, with DKK 7.8 billion. The turnover of meetings industry in generates significant number of jobs. On average, the analysis shows, that a turnover from meeting activity of DKK 1 million creates 1.8 jobs. Contribution from DKK 1 mill Expenditure Total Expenditure DKK 1,000,000 GVA direct DKK 410,192 GVA direct and derived DKK 734,763 Income taxes (personal and corporate) DKK 226,700 Employment (Full Time Equivalent) 1.8 v

7 The Meeting Industry has positive effects in all regions of. Not surprisingly, the analysis shows, that the Capital is the largest contributor with 75,800 meetings held in 2010, or 40 per cent of all commercial meetings held in. The of Southern is the second largest region when it comes to the number and economic effects of meetings. al Key Figures Capital Central North Zealand of Southern Total number of meetings 75,800 36,300 11,100 18,700 46,000 Total number of delegates 2,744,000 1,263, , ,800 1,923,500 Economic Key Findings DKK billion Total Expenditures Direct and derived effects Gross Value Added Income taxes Full-year jobs (equivalent) Employment 12,700 7,600 3,200 3,600 10,800 1: Including personal and corporate This Meeting Satellite Account is the first of its kind in. It reveals the economic magnitude and contributions of the commercial meeting industry. Based on lessons from a similar study in Canada, and following the guidelines of the World Tourism Organization (UNWTO), Visit has conducted this analysis based on three separate surveys on venues, meeting organizers and delegates. Departing in MPI s definition of meetings, the analysis only includes meetings of at least 4 hours with the purpose of conducting business, held in a commercial venue with 10 participants or more. vi

8 1 Introduction 1.1 Objectives The overall objective of the study is to provide insights into the number of meetings held in and their significance to the regional and national economy during the year More specifically, The Economic Contribution of Meeting Activity in is aimed to achieve the following goals: 1. To estimate the volume and structure of the meeting activity in. 2. To estimate the demand-side expenditure of meeting participants as well as the supply-side expenditure of meeting organizers. 3. To estimate the direct economic contribution of meetings activity in 4. To estimate the derived economic effects of meetings, in terms of indirect and induced contributions to the Danish economy. This Danish study closely follows recommenddations from UNWTO 1.2 Background Today, we can speak with some authority of the tourism industry. After many years of tourism impact studies following established international measures, tourism has been recognized as an industry and counted as a contributor to the global as well as the Danish Economy. However, until now, the meetings industry in has been unable to account for the scope of its total economic importance. Being an economic activity that exists across the boundaries of many industries, the Danish meeting industry has not yet received adequate recognition for its contribution. A number of independent studies have been conducted covering aspects of the Meetings Industry, but this is the first attempt to establish a total account for the economic contributions. The general purpose of the study is to identify the importance of meetings to the Danish Economy. Reliable accounting of meetings activity will lead to greater recognition of meetings as an economic driver. This report is desired to help the meeting industry to obtain recognition from local, regional and national governments and to ensure a right foundation of knowledge for policies. International Experiences On an international level, only few countries have conducted studies of the economic contribution of the meeting industry. In order to encourage the development of economic meeting studies, the UNWTO published a set of recommendations in 2006 on how to establish internationally standardised economic measurements of the meeting industry. MPI Foundation Canada (2008) has made one of the more extensive economic measurement studies of the meeting industry. Several other countries have investigated the value of the meeting industry to different extents. A list of international studies is provided in the appendix to this report. This Danish study closely follows the recommendations from UNWTO on how to establish national accounts of the meeting industry. Furthermore, the development of the methodological framework for this study has been heavily inspired by the Canadian study, The Economic Contribution of Meetings Activity in Canada, published in

9 Many Years of Research The findings presented in this study describe the economic contributions of meetings in during These figures are result of several years of work. Back in 2009, Visit presented the idea of conducting an economic study of the meeting industry in to several regional tourism organisations and MPI (Meeting Professionals International). Obtaining interest and involvement from these organisations, Visit established a group of experts representing the meeting industry, the research industry and universities, and this group of people has assisted Visit in developing the methodological framework of the study as well as in understanding the many new findings of the study. During 2010 the methodological framework of the study was developed, the surveys were conducted by the end of 2010 and during most of 2011, and finally, by the end of 2011 and the beginning of 2012, the project group has analysed and presented the results. Just as with tourism, the consumer is the key to identifying the significance of the meeting industry 1.3 Meeting Satellite Account The meeting industry faces the same difficulties as the tourism industry faced before the development of the Tourism Satellite Account (TSA) in that it is an activity hidden among different industries. Where the economic contributions of other industries are measured in the National Accounts, the meeting industry is a demand side activity, dependent on the status of the consumer rather than the supplier. Just as with tourism, the consumer is the key to identifying the economic contribution of the meeting industry. The study, presented here, is a satellite account for the meeting industry in. A satellite account measures an industry from the demand side. For this reason, the values presented in this report all include taxes and VAT. This Meeting Satellite Account counts all economic contributions of meetings, defined as follows: According to MPI recommendations, a meeting is defined as: A coming together of people with the key purpose of motivating participants and to conduct business; held in a commercial venue for a minimum duration of four hours, with ten participants or more. The meeting industry overlaps with the tourism industry. Tourists can be travelling for the purpose of either business or pleasure, and if it is business, it may involve a meeting. However, business tourism in the TSA framework includes much more than meeting delegates. Business tourists can be travelling salespersons, journalists, and others not attending meetings held in commercial venues and involving less than 10 participants. Conversely, some meeting activities are not tourism in the TSA sense and thus not comprised in the Tourism Satellite Account. Non-tourism meetings include among others meetings involving local day-delegates and participants who are not staying at the traditional tourism facilities. In this way, the tourism industry and the meeting industry overlap. 2

10 Figure 1.1 Tourism Satellite Accounts and Meeting Satellite Accounts MSA 1.4 Measuring Meetings in the Future With this report a methodology of measuring meetings in has been developed. The authors would recommend repeating this study every 2 3 years, which corresponds to the major studies conducted in tourism. This would bring the level of knowledge of meeting industry economics to the same level as that of the tourism industry. Should the study be repeated, a number of reflections and possible improvements are to be considered. Unlike the Canadian study, this analysis does not include specific information on keynote speakers or sponsored attendees. The expense for speakers and sponsored attendees is included in the meeting cost, but the person is seen as a delegate in this analysis. There can, therefore, be a small double accounting as sponsored delegates and keynote speakers who in this study are perceived as participants, are applied a meeting cost. In reality, speakers would not be charged a delegate fee. This possible double accounting should be eliminated by extending the study in the future. Furthermore, the current analysis does not include consumer shows or exhibitions. Trade shows are included, but not consumer shows. The surveys conducted as part of this work turned out to be inadequate to cover this type of meeting activity. Future economic studies of meetings in should, however, aim at finding a way to include this important meeting activity. 1.5 Structure and Use of the Report The report is structured as follows: Chapter 2 reviews the methodology of the analysis, going through the compositions of the surveys, response rates, and the models used to measure the expenditure and derived economic effects. Capacity structure of the Danish meeting venues is outlined in chapter 3 in order to provide a foundation of the study. Chapter 4 states the findings of the venue survey, showing volume and structure of the 3

11 meeting activity in. In chapter 5 delegates are examined in numbers and behaviour. Daily spending is computed in chapter 6 by meeting costs from the organizer survey and by delegate s consumption from the delegate survey. Chapter 7 concludes these findings into the total expenditures of meetings in. The derived economic effects of meetings are stated in chapter 8. A glossary is provided in appendix 1 including among other things the definitions of venue types used. Appendix 2 provides a list of international studies of the national meeting industries, and appendix 3 contains extended tables, which are referred to in the chapters. Notes are provided throughout the report as footnotes. The questionnaires of the three surveys are available upon request. 4

12 2 Methodology The analysis is built on three surveys of venues, organizers and delegates. The venue survey provides the numbers and size of meetings in days and delegates. To calculate the total expenditure, this is combined with daily spending found through the organizer and delegate survey, measuring meeting costs and delegate spend, respectively. Together, the three surveys provide the direct economic contribution of meetings, that is, the Meeting Satellite Account (MSA). The result has then been evaluated through the macro economic equilibrium model LINE, leading to direct and derived economic effects in terms of value added, employment and taxes. This chapter will run through the surveys and the methods used to establish the Meeting Satellite Account as well as the estimation of derived economic effects. Figure 2.1 Basic Structure of the Analysis Venue Survey (Epinion) Organizer Survey (Epinion) Delegate Survey (SFI) The surveys cover venues, organizers, and delegates No. of delegates and meeting days Total Expenditure Daily cost and spending Derived economic effects (CRT). 2.1 The Surveys The Venue Survey The venue survey was carried out by Epinion as an online questionnaire and was conducted during the first part of 2011, addressing the meeting activity throughout Respondents were contacted by mail from a sample made by Visit through research and contact with the industry. Follow-up calls ensured a response rate on a satisfactory level. 5

13 Almost 700 venues are included in the survey The sample of venues consisted of the total population of 692 meeting venues in, though excluding restaurants and cafés. The survey was sent to all 692 meeting venues and obtained a response rate of 55 percent. Greatest share was accomplished with the Congress/exhibition venues, while education venues (including Universities/education centres and Folk high schools) are represented by a smaller share, though still by 35 per cent. Table 2.1 Venue Survey Sample Responses Response rate Venues pct. In total Congress/exhibition venues Hotels Holiday resorts Conference/course centres Special event venues Attractions Universities/education centres Folk high schools Information on capacity was collected for the entire sample, regardless of whether the venue had answered the questionnaire or not, and the results of the survey was weighed according to information on capacity, type and geographical position of the venue. Apart from some basic information on capacity, the venues were asked about the number of meetings held on their premises, divided into five purposes: Conference/Congress, Trade Shows, Consumer Shows, Courses, and Other Meetings. For the single meeting purpose, the meetings were divided into number of days, 1 to 4 and more than 4. In addition, the venues were asked to state the total number of delegates per meeting purpose. In the case of trade shows, the question of delegates was covering the visitors. Trade show exhibitors were not included in the survey, but were eventually set to be 6 per cent of visitors for the individual venue, based on research among the venues. The Organizer Survey The organizer survey was conducted as an online questionnaire, followed by a survey of telephone interviews, extending the response rate. The sample included both independent, commercial meeting organizers, and in-house meeting organizers undertaking the organization of meetings within larger companies, and included both domestic and international organizers. As with the venue survey, the organizer survey was conducted by Epinion during the first half of 2011, addressing meetings held during More than a thousand organizers were invited to participate in the survey. More than half of these were in-house organizers. The response rate was lower than with the venue survey, though still satisfactory for this kind of survey. The primary aim of the survey was to reveal the cost of meetings seen from the supply side of meetings - and the composition of the expenses. The questionnaire included questions on meeting purpose, costs, and the composition of the expense included rent of venues and facilities, catering, transportation, external staff, entertainment, speakers, advertisement/marketing, insurance, and administration, with few variations according to 6

14 meeting purpose. An average meeting cost per purpose was composed and weighted according to the number of meetings organized by the respondent. Table 2.2 Organizer Survey Sample Completes Response Rate pct. In total 1, Domestic organizers International organizers Respondents include both domestic and international The Delegate Survey The third and final survey regarded meeting delegates. This survey was conducted with 881 meeting delegates, including questions on delegate expenditure during their stay in. The respondents were identified as part of Visit s national tourist survey conducted through-out 2011 by the Danish national Centre of Social Research delegates, but (SF). The survey consisted of face-to-face, closed question interviews with business tourists, of which 880 respondents fulfilled the definition used in this report on meetings. only those staying over night Respondents include both domestic and international delegates, but only participants staying over night in registered bed night venues, i.e., hotels, holiday resorts, hostels, camp sites, and holiday cottages. All interviews have been weighted according to the official business bed night statistics by Statistics. In the analysis, it is assumed that the composition of delegates is also valid for venues not included in the delegate survey, i.e., Conference/course centres, Special event venues, Universities/education centres and Folk High Schools, as long as the venue in question had the capacity of bed nights. Delegates staying in one of the five registered types of venues, but attending meetings at the non-registered types not included in the delegate survey, have been deducted. Due to the definitions of venue types it is not possible to have bed nights at Congress/exhibition venues and Attractions. If a hotel or alike is affiliated with one of these two types, the venues are considered separate. Table 2.3 Delegate Survey With business Purpose Respondents Who are attending meetings according to the MPI definition In total 4, Domestic delegates 1, International delegates 3, The survey revealed the delegates spend on the meeting and divided the expenditure into among others accommodation, food, culture, transportation. Spending on transportation does however not include costs paid outside. 7

15 The analysis of data assumed that there had to be a cost of accommodation during meetings including overnight stays, even if the cost is refunded or prepaid by the delegate s company. It is, however possible not to have a daily spending besides accommodation, as catering and collective transportation can be included in the meeting costs from the organizer survey. As delegates are questioned after arrival at their place of accommodation, VAT is included in the answer when it comes to the cost of accommodation. The analysis does not take into account that the 50 per cent VAT refund on business bed nights reduces the actual meeting expenditure. The same point can be made to restaurant expenses, which are subject to a 25 per cent VAT refund. Day-delegates The above mentioned delegate survey only gives information on meeting participants staying over night. Understanding of the number and spending of day delegates has been established through a combination of other sources. The Danish National Travel Survey (DTU 2009) has been used to establish the municipality of origin for domestic day-delegates. This survey comprises 26,000 interviews a year, conducted partly through online questionnaires (20 per cent) and partly as telephone interviews (80 per cent). In this survey, respondents state their means of transportation as well as the purpose of the trip. In the analysis, the answers from day delegates have been weighed by geography, age and gender. Unfortunately, no source of information has been available to provide information on the number of or expenditure of international day-delegates. Both the number and spend by international day delegates is assumed in the study based on the findings concerning delegates staying overnight Determining Direct Contribution The MSA is established by combining the number of delegates with daily delegate spending and daily meeting cost To determine the direct contribution to the economy, a daily spending and cost has to be assigned to the single delegate for the particular meeting day. The venue survey has established the total sum of delegates and meeting days. The delegate survey then contributes with information on the number of bed nights generated of meetings, leaving the residual number of meeting days to be attended by day-delegates. The Meeting Satellite Account (MSA) is then established by combining the number of delegates with information on daily delegate spending (demand side expenditure) and daily meeting cost (supply side expenditure). Furthermore, it is ensured that the total meeting expenditure per industry does not exceed the values for the same industries in the Danish national account. 2 1 Daily spending for day delegates is base don those found for delegates staying over night, excluding cost of accomodation. Furthermore, domestic day-delegates are given a lower spend if travelling within their own region. 2 Daily meeting cost is divided into the recipient industries. For example, hire of facilities is attributed to the industry of the venue type, and cost of speaker is located within the education industry, when the purpose of meeting is Courses. This division made it possible to test the results 8

16 Gross Value Added, employment (FTE s) and taxes can be derived from LINE 2.3 Determining the Derived Effects While the direct contribution of the meeting activity illustrate the payments made directly to the demand driven industry, the indirect and induced contribution make up the true echo of meetings to the economy. The indirect economic contribution arises when the direct spending and cost is followed backwards to the industries supplying products and services for the end product. When a product is made, there will be paid an income for the household of the employed, both from the direct and the indirect contribution. This income will be spent on new products, and this represents the induced economic contribution. An input-output based, inter-regional macroeconomic model has been used to determine the destination of these indirect and induced economic contributions. LINE is such a model, working on municipality level. For this purpose Centre for al and Tourism Research (CRT) has customized the model, using some of the same framework as for tourism. In the LINE model, the iterations are made ten times. That is, the direct contribution of the meeting activity is followed through an input-output model ten times to determine the indirect and induced contribution. The total economic contribution can be stated in different derived effects. This report determines the Gross Value Added, employment and taxes, created from the meeting activity, and the figures are stated both in absolute terms and as percentages of the total economy. Taxes include personal income taxes (divided into recipient public entity), corporate income taxes and VAT. Due to large subsidies on transportation, product taxes and subsidies are not included in the report. against the respective national accounts, e.g., Conference and Course Centres, and Organization of Congresses and exhibitions. The contribution to these industries from meeting activity turned out not to exceed the total activity in the respective industries. 9

17 3. Capacity When measuring the meeting activity in a country it is essential to have an idea of the capacity for these meetings. Delegates can attend meetings continuously and international delegates can be brought in from distant corners of the world, leading to the possibility of almost indefinite demand. The supply of meeting venues, however, is rather fixed in the short run and, since is a relatively small country, constrained in the longer run. The following short chapter will look into the venue capacity in, i.e., the suppliers of commercial meeting facilities. Almost half As mentioned in the previous chapter, the number of venues suitable for meetings of of the venues more than 10 people for the duration of 4 hours or more, is found to be 692. These can are hotels, be split into eight categories, or venue types (see glossary for the definition of the single but venue type). Almost half of the venues are Hotels, but measured in participant capacity measured in Hotels only constitute 27 per cent. Congress/exhibition centres are fewer in participant with only 14 venues, but these make up 23 per cent of the total participant capacity. capacity Special event venues, including venues like theatres and sports arenas, are with hotels only extensiveness in both numbers and average size, the greatest source of capacity for constitute 27 meetings in with 31 per cent of daily maximum participant capacity. Maximum per cent capacity is defined as the greatest amount of delegates possible for meetings at the venue at one time, that is including all meeting rooms and usually with a classroom setup. The subgroup Attractions include venues normally seen as tourist attractions and include venues such as museums, amusement parks, and castles open to the public. Throughout the analysis this subgroup is referred to as Special Event Venues. Universities/Education centres and Folk high schools are, throughout the report, combined as Educational venues. Table 3.1 Participant Capacity per venue type No. of venues Daily participant capacity (maximum) Average maximum capacity per venue In total , Congress/exhibition venues ,500 7,248 Hotels, small , Hotels, large , Holiday resorts 43 9, Conference/course centres 63 28, Special event venues ,100 1,062 Attractions 34 14, Universities/education centres 25 19, Folk high schools 43 8, *Small hotels are here defined as having a capacity of less than or equal to 200 participants Source: Venue Survey 10

18 The pie chart in Figure 3.1 shows the maximum daily participant capacity per venue type, with a few aggregations. Figure 3.1 Participant Capacity split on type of venue Educational** 7% Congress /exhibition 23% Special venues* 35% Holiday resorts 2% Hotels 27%. *Incl. Attractions and Special venues. **Incl. Universities/educational centres and Folk high schools. Source: Venue Survey Conference /course centres 6% The largest average capacity concerning a specific venue type is seen for Congress/ exhibition venues in the Central Most venues are located in the Capital (30 per cent). The region also has the largest average capacity per venue, due to the venue type Special Event Venues. The largest average capacity concerning a specific venue type is seen for Congress/exhibition venues in the Central. Average maximum capacity per region and venue type can be seen in appendix 3, table A1. Table 3.2 Participant Capacity per region No. of venues Daily participant capacity (maximum) Average maximum capacity per venue In total , Capital , Central , North 84 28, Zealand 91 30, of Southern , Source: Venue Survey 11

19 4. Meeting Activity Chapter 4 states the meeting activity during 2010 in terms of number of meetings, durations and locations. All figures shown in this chapter are rounded. Based on the venue survey, it is found that 187,900 commercial meetings were Half of all conducted in in 2010, which amounted to 295,700 days of meetings. meetings Conference and Congresses had the longest duration with more than half the meetings are courses exceeding one day. Courses are the most frequent meeting purpose, constituting half of all meetings held in. Four fifths of all Other Meetings are only of one day. Table 4.1 Meeting Activities No. of meetings Days of Meetings Average length Meetings of 1 day Meetings > 1 day Meetings In total 187, , ,600 81,300 Conference/congress 48,800 84, ,900 27,900 Trade shows 1,100 1, Courses 95, , ,700 45,300 Other meetings 42,900 52, ,300 7,600 Note: The duration of meetings is a discrete variable. Hence, the average is overestimated Source: Venue Survey The Capital handles 40 per cent of all meetings in. The region is leading in all meeting purposes ranging highest in Other Meetings with 54 per cent. The of Southern has 24 per cent of all meetings, and if seen per capita, this region has the most meetings. Divided per venue, the venues of the Capital are most active, with 360 meetings per venue, followed by the Central. The national average is 270 meetings per venue. Table 4.2 Meetings per region Capital Central North Zealand of Southern Meetings In total 75,800 36,300 11,100 18,700 46,000 Conference/congress 22,100 10,300 3,100 3,600 9,600 Trade shows Courses 30,100 20,600 4,000 11,500 28,800 Other meetings 23,200 5,300 4,000 3,300 7,200 Source: Venue Survey 12

20 Figure 4.1 Meetings per venue type Special venues* 10% Holiday resorts 3% Educational** 4% Congress /exhibition 3% Conference /course centres 25% The greatest activity level per venue is, however, at Conference/ Course centres Hotels 55% *Incl. Attractions and Special venues. **Incl. Universities/educational centres and Folk high schools. Source: Venue Survey More than half of all meetings are held at Hotels. The greatest activity level per venue is, however, at Conference/Course centres with 760 meetings per venue, i.e., more than 3.3 meetings per working day 3. Universities have the lowest activity level per venue with 69 meetings per venue per year. It should be remembered, that only venues with commercially used meeting facilities are included in the study. Table 4.3 Average Activity per venue Meetings per venue In total 272 Congress/exhibition venues 347 Hotels 305 Holiday resorts 126 Conference/course centres 760 Special event venues 120 Attractions 73 Universities/education centres 69 Folk high schools 152 Source: Venue Survey official working days in

21 Other Meetings have almost always a duration of one single day 4.1 Length of Meetings Most meetings in are of only one day duration. There are, however, differences across both venue types and meeting purposes. Figure 4.2 shows the total number of meetings spread out by duration for the four meeting purposes. For the purpose of Conference/congress, the venue types Congress/exhibition venues, Universities, and Attractions are per cent concentrated on a single day, though Universities also have relatively many meetings with duration of more than four days. For Hotels and Holiday Resorts two-day duration is the most common. More than half of all Trade Shows are of more than one day. Looking at the Congress/exhibition venues, however, two-day durations are more common (32 per cent) and three fourths of all Trade Shows at this venue type are of more than a day. Though Trade Shows at this venue type are often great in size (see chapter 5), the number of meetings only represents 7 per cent of all Trade Shows. Courses are, as all other meetings, most often conducted at Hotels, due to the great amount of hotels in with meeting facilities. Looking at Conference/Course centres, one- and two-days durations are equally frequent. For Folk High Schools, twoand three-days duration is just as common as one day. The residual purpose of Other Meetings is nearly always of a single day. The variation across venue types is relatively small, with Congress/exhibition venues having the longest meetings. Figure 4.2 Duration of Meetings Conference/congress 700 Trade shows day 2 days 3 days 4 days 5 days day 2 days 3 days 4 days 5 days + Courses Other meetings day 2 days 3 days 4 days 5 days day 2 days 3 days 4 days 5 days + Source: Venue Survey 14

22 5. Delegates A total of 6.9 million delegates attended the 187,900 meetings held in in Most delegates attended Conference and Congresses, while Trade Shows had the highest number of participants per meeting. Courses have the lowest number of delegates per meeting. Table 5.1 Delegates at Meetings No. of delegates 1,000 delegates Delegates per meeting In total 6, Conference/congress 2, Trade shows (visitors) Trade shows (exhibitors) Courses 2, Other meetings 1, Source: Venue Survey Courses have the lowest number of delegates per meeting Just as with the number of meetings, the Capital accounts for 40 per cent of all delegates attending meetings in. Conference and Congresses are the most used meeting purpose in this region, as well as in all other regions, except in Central where Courses are most frequently attended. Relative to the number of meetings seen in table 4.2, the most attended meeting purpose is Trade Show (visitors) in Central with 1,300 delegates per meeting, followed by only half the numbers in the Capital. The smallest meetings are held in Zealand with the purpose of Other Meetings, having an average size of 16 delegates. Table 5.2 Delegates at Meetings per region Capital Central North 1,000 delegates Zealand of Southern In total 2,744 1, ,923 Conference/congress Trade shows (visitors) Trade shows (exhibitors) Courses Other meetings Source: Venue Survey If split by venue type the number of delegates is highest for Hotels, with 44 per cent. Though lower than the share of meetings for the venue type, the share of delegates for Hotels exceeds the cut of the total participant capacity. That is, Hotels have a relatively high utilization of capacity regarding meetings, but the meetings are smaller than average, in terms of numbers of delegates. Special venues constitute 35 per cent of participant capacity, but only 16 per cent of the delegates attending meetings. The explanation for this lies within the kind of venues, this type constitutes. Sports arenas and theatres are included in this category, and these will have a large participant 15

23 capacity that is not regularly used for the purpose of meetings. Congress/exhibition venues have a lower share of delegates than of the capacity, but a far greater share compared to the share of meetings, consistent with a large average of delegates per meeting. Conference/Course centres have a high degree of utilization. With only 6 per cent of the participant capacity, 25 per cent of all meetings were held at this venue type, attended by 20 per cent of all delegates. Figure 5.1 Delegates per venue type Special venues* 16% Educational** 3% Congress /exhibition 15% Conference/ Course centres have a high degree of utilization Holiday resorts 2% Conference /course centres 20% Hotels 44% *Incl. Attractions and Special venues. **Incl. Universities/educational centres and Folk high schools. Source: Venue Survey The delegates can be further subdivided into delegates staying over night vs. daydelegates and domestic delegates vs. International. These subdivisions can be found in table 5.3. Of the nearly 7 million delegates, 6 million were Danes, leaving 928,000 International. Of the 5.2 million Danish day-delegates, 4 million are locals, i.e., attending meetings within the same region as their home address. More than half of the International delegates are attending Conference and Congresses, while Danes are almost equally attending Courses. This meeting purpose also has the largest share of domestic delegates staying over night (23 per cent). For international delegates, Trade Show Exhibitors are most frequently staying over night, though they are relatively few in numbers. 16

24 Table 5.3 Delegates per Length of Stay and per Domestic/International Conference Trade shows Total /congress Visitors Exhibitors Courses Other Meetings 1,000 delegates Total 6,930 2, ,318 1,208 Staying over night 1, Day-delegates 5,912 2, ,776 1,143 Domestic 6,002 2, , Staying over night Day-delegates 5,186 1, , Locals 4,002 1, , International Staying over night Day-delegates Note: Locals are defined as day-delegates within same region as residence The total number of daydelegates is considered robust The number of International day-delegates found in the study appears high. Due to the proximity of the neighbouring countries it is, however, not unlikely. According to a survey made by Øresundsbro Konsortiet (2011), 1.2 million passenger vehicles with the purpose of business, excluding commuters, passed the bridge between Sweden and in More than half of the international day-delegates, found in the study, are attending meetings in the Capital (58 per cent). The residual is primarily travelling for the of Southern (17 percentage points) and the Central (15 percentage points). There is some uncertainty to the nationality split of daydelegates due to the assumptions mentioned in chapter 2, but the total number of daydelegates is considered to be rather robust. 5.1 Delegates Staying over Night Delegates staying over night amounted to 1 million in Of these, almost half were staying at a hotel (with or without commercially used meeting facilities). Due to the definition of the venue types, it is not possible to stay over night at Congress/exhibition venues and Attractions. Table 5.4 Delegates Staying over Night By Accommodation By Meeting Venue 1,000 delegates In total 1,018 1,018 Congress/exhibition venues - 54 Hotels Holiday resorts Conference/course centres Special venues* Educational** *Incl. Attractions and Special venues. **Incl. Universities/educational centres and Folk high schools Source: Venue Survey and Delegate Survey 17

25 Table 5.5 shows, equivalently to table 5.4, the delegates staying over night, but here measured in number of bed nights. As most delegates will be sleeping in separate rooms, bed nights can be seen equivalent to room nights. Table 5.5 Bed nights By Accommodation By Meeting Venue 1,000 bed nights In total 2,156 2,156 Congress/exhibition venues Hotels 1, Holiday resorts Conference/course centres Special venues* Educational** *Incl. Attractions and Special venues. **Incl. Universities/educational centres and Folk high schools Source: Venue Survey and Delegate Survey Of these 2.2 million bed nights, 460,000 or 25 per cent constituted International meeting participants. However, due to a limited number of interviews with meeting delegates, it has not been possible to split up the number of meeting participants in type of nationality. 18

26 6. Daily cost and spending The expenditures in connection with a meeting are made up of two parts: the cost of the meeting and the delegate spending. The cost of the meeting includes everything inside the meeting room 4, e.g., room hire, catering, entertainment, administration, etc. and are typically financed by the meeting organizer. Delegate spending include all costs outside the meeting room, i.e., accommodation, transportation (individual), restaurants, and shopping. These types of expenses are usually paid by the delegate, but some costs are often paid or refunded by the company. In section 6.1 the cost of the meeting is shown as an average daily meeting cost per person. Section 6.2 regards the delegate spending and is set in the same way, presenting the average daily delegate spending and the total delegate spending. The two are put together in section 6.3, providing an average daily cost and spending of meetings. The total direct expenditures of meeting activity in are found in chapter 7. For Conference and Congresses the average meeting cost per delegate is DKK 1, Expenditures Associated with Meeting Organization Daily meeting costs are independent of delegate nationality and do not deviate according to whether the delegates are staying over night or just for the day. The costs can be paid by the host, the company or the delegate himself; the funding is not accounted for. For Conference and Congresses the average meeting cost per delegate is DKK 1,220. This is mostly made up of facility hire and catering (60 per cent). Trade Show exhibitors have a high average meeting cost of DKK 7,560, as it includes the price of building and accessorising the exhibition stand. Catering cost is high, since food and beverages at the stand are also included. Table 6.1 Daily Meeting Costs Conference Trade shows /congress Visitors Exhibitors Courses Other Meetings DKK Per delegate 1,220-7,560 1, Including Venue hire 370-3, Catering 370-2, Administration Speakers/teachers Note: Rounded figures. For an extended table, see appendix 3 Source: Organizer Survey The meeting cost of sending a delegate to a Course is on average DKK 1,070. Here the cost of the teacher is the largest expense, followed by the cost of the meeting room itself. Collective transportation constitutes DKK 100. Other Meetings are the meeting purpose with the smallest cost attributed. The DKK 930 covers mostly catering and venue hire, but collective transportation also has a relatively high share of 10 per cent. 4 Including collective transportation. 19

27 It is estimated to be free to visit at trade show. This is the result from the delegate survey, and true for most trade shows, when the delegate is affiliated with the industry. 6.2 Delegate Spending The daily delegate spending varies, unlike the daily meeting cost, by the profile of the delegate. For each meeting purpose there are five different daily delegate spending patterns: two for international and domestic, respectively, according to whether they stay the night or not, and one daily delegate spending for local day-delegates, as they will have less cost for transportation. The exception lies with the Trade Show. Here domestic and internationals cannot be distinguished. This limits the daily delegate spending for Trade Show visitors and exhibitors to be specific only according to, whether the delegate is staying over night, a day-delegate, or a local day-delegate. Relative to the Danish non-local day-delegates, the daily delegate spending of local daydelegates is excluding transportation to/from the destination, but including local transportation, e.g., taxi, coaches, etc. The study includes only costs incurred in. This leaves costs of international flights out Table 6.2 Average Daily Delegate Spending Conference Trade shows /congress Visitors Exhibitors Courses Other Meetings DKK Total 1, , ,130 Staying over night 2, ,590 1,250 2,070 Day-delegates ,040 Domestic 1, ,110 Staying over night 2, ,590 1,250 2,260 Day-delegates 1, , ,620 Locals International 1, ,540 1,090 1,190 Staying over night 1, ,590 1,310 1,810 Day-delegates 1, , ,080 Note: Rounded figures. Source: Delegate Survey International delegates have a higher average daily delegate spending across all meeting types, but domestic delegates have a higher daily consumption than International delegates, when on Conference/Congress and Other Meetings. The reason can be found mostly in transportation. The study includes only costs incurred in. This leaves costs of international flights out, leading to a lower daily delegate spending for International delegates. The daily delegate spending is subdivided into product groups in table 6.4. Some food and beverages can be included into the price of accommodations, as many hotels include breakfast in the room price. It is not possible to make this distinction in the delegate survey. Food and beverage here includes both restaurants/cafés/bars, and food and beverage bought in retail. These are dealt with separately in the further analysis of economic effects. The same is true for the component group shopping. 20